Pacira Pharmaceuticals, Inc. v. Research Development Foundation

District Court, D. Nevada·Decided September 13, 2024·No. 2:21-cv-02241·Unknown

Opinion

1 2 UNITED STATES DISTRICT COURT DISTRICT OF NEVADA 3 4 Pacira Pharmaceuticals, Inc., Case No. 2:21-cv-02241-CDS-NJK

5 Plaintiff Order Resolving the Parties’ Omnibus Motions in Limine 6 v.

7 Research Development Foundation, [ECF No. 227, 236, 248]

8 Defendant

9 10 Plaintiff Pacira Pharmaceuticals, Inc. sues defendant Research Development Foundation 11 (“RDF”) in this declaratory-judgment action arising out of a long-standing assignment 12 agreement between the parties. RDF filed an omnibus motion in limine. RDF Mot., ECF No. 227. 13 Pacira opposes the motion. Opp’n, ECF No. 265 (sealed). Pacira also filed an omnibus motion in 14 limine. Pacira Mot., ECF No. 236 (sealed); ECF No. 248 (unsealed). RDF filed an opposition. 15 ECF No. 267 (sealed); ECF No. 269 (unsealed). I address each motion in turn1. For the reasons 16 set forth herein, I deny RDF’s motions in limine, and grant in part and deny in part Pacira’s 17 motions in limine. 18 I. Legal standard 19 Motions in limine are a well-recognized judicial practice authorized under case law. See 20 Ohler v. United States, 529 U.S. 753, 758 (2000). The court’s power to rule on motions in limine 21 stems from “the court’s inherent power to manage the course of trials.” Luce v. United States, 469 22 U.S. 38, 41 n.4 (1984). Trial courts have broad discretion when ruling on such motions. See 23 Sweeney v. Chang, 2019 WL 1431583, at *2 (C.D. Cal. Mar. 26, 2019) (citing Jenkins v. Chrysler Motors 24 Corp., 316 F.3d 664, 664 (7th Cir. 2002)). Regardless of the court’s initial decision on a motion in 25

26 1 For ease of reference, I refer to the public redacted versions (ECF No. 248; ECF No. 269) throughout this order. Pacira has not yet filed a public version of its opposition at ECF No. 265. 1 limine, any issues can be revised during trial. See Fed. R. Evid. 103, Advisory Committee’s Note to 2 2000 Amendment (“Even where the court’s ruling is definitive, nothing in the amendment 3 prohibits the court from revisiting its decision when the evidence is to be offered.”); Luce, 469 4 U.S. at 41–42 (“[E]ven if nothing unexpected happens at trial, the district judge is free, in the 5 exercise of sound judicial discretion, to alter a previous in limine ruling.”). “The Supreme Court 6 has recognized that a ruling on a motion in limine is essentially a preliminary opinion that falls 7 entirely within the discretion of the district court.” United States v. Bensimon, 172 F.3d 1121, 1127 8 (9th Cir. 1999) (citing Luce, 469 U.S. at 41–42); accord Walter Kidde Portable Equip., Inc. v. Universal 9 Sec. Instruments, Inc., 479 F.3d 1330, 1338 (Fed. Cir. 2007) (“[I]n limine rulings are preliminary in 10 character.”). 11 II. Discussion 12 As background, the parties do not dispute “whether Pacira’s new patents ‘relate to the 13 Assigned Proprietary Property’ under Section 3.8 of the 1994 Agreement [], and connected, if the 14 new patents do relate, ‘whether the [1994 Assignment and the 2004 Agreement] are 15 unenforceable as applied to the new patents” is an issue to decide at trial. Pacira Resp., ECF No. 16 265 (citing ECF No. 178 at 4 n.4);, ECF No. 227 at 5 (citing Summ. J. Order, ECF No. 152 at 17– 17 18). Pacira also asserts that its claim for declaratory judgment of unenforceability, specifically 18 identifying unenforceability on the grounds of unconscionability and public policy, together 19 with RDF’s competing request for declaratory relief on the same, is also a live issue for trial. ECF 20 No. 265 at 10. I agree. With that in mind, the court resolves the motions in limine (MIL) as 21 follows. 22 A. RDF’s motions in limine (ECF No. 227) are denied. 23 RDF moves to exclude “evidence, questioning, or argument regarding: 24 1. The existence and extent of any contributions by RDF to Proprietary 25 Property or Assigned Proprietary Property following the parties’ execution of 26 the 1994 Assignment Agreement; and 1 2. The magnitude of time, manpower, and/or money spent to create the 200L 2 process. 3 3. The amount of any future payments or royalties from Pacira to RDF under 4 the parties’ Agreements or under any particular interpretation or 5 construction thereof. 6 4. The effects of any future patent or patent application on any Pacira 7 payment obligation under the Agreements, or that hypothetical future 8 payments might make those obligations ‘perpetual’ or otherwise extend those 9 obligations ‘for an infinite amount of time.’” 10 ECF No. 227 at 5. 11 RDF argues that the only remaining issue of fact for trial is whether RDF has proven, by 12 a preponderance of the evidence, that the ’495 Patent or other New Patent ‘relates to’ ‘Assigned 13 Propriety Property’ under Section 3.8 of the 1994 Agreement[,]” making the aforementioned 14 arguments irrelevant because “the plain language of Section 3.8 of the 1994 Assignment 15 incorporates later-arising patent rights as included in the Assigned Proprietary Property if 16 DepoTech, n/k/a Pacira ‘obtains’ those rights.” Id. at 5–6. 17 Pacira opposes RDF’s omnibus motions in limine, arguing in sum that the motions are 18 improper, repackaged attempts to unravel the court’s decisions in its summary judgment and 19 reconsideration orders, and further argues that RDF’s motion is contrary to its own positions in 20 the pretrial order.2 ECF No. 265 at 12. Pacira also argues that RDF now contends that 21 procedural unconscionability is no longer a live issue for trial. Id. at 5. In its reply, RDF refutes 22 this last argument by Pacira, asserting that it neither does nor did it ever, contend that 23 procedural unconscionability was no longer a live issue for trial. ECF No. 278-1 at 4. 24 25 2 In the pretrial order, RDF identified “[w]hether any payment-related terms or provisions of the parties’ 26 Agreements are unconscionable, against public policy, or otherwise void or unenforceable,” as a contested issue of law. ECF No. 170 at 17. 1 But the way RDF wrote its omnibus motion makes clear this was RDF’s position. ECF 2 No. 227 at 5 (“Pacira represented to the Court that: “The only remaining contested issue of fact 3 for trial is: Whether RDF has proved, by a preponderance of the evidence, that the ’495 Patent or 4 other New Patent ‘relates to’ ‘Assigned Proprietary Property’ under Section 3.8 of the 1994 5 Agreement.”); id. at 7 (“ 6 7 ” (quoting Summ. J. Order, ECF No. 152 at 17–18)) (emphasis in original); id. at 5–6 (“The 8 remaining issue for trial has nothing to do with the cost, time, or effort required to create the 9 200L EXPAREL manufacturing process,” and “[t]he remaining issue for trial likewise has 10 nothing to do with how much money has been paid in royalties by Pacira thus far” and “the 11 remaining issue for trial has nothing to do with how long the contract lasts before it expires.”). 12 RDF’s MIL Nos. 1–4 are denied. The issues remaining for trial3 include the question of 13 whether the ’495 patent is related to the ‘838 patent and unconscionability (asserted by both 14 parties4), thus evidence related to these two subjects is relevant. Evidence related to RDF’s 15 position regarding its entitlements under its contract with Pacira is also relevant. Further, the 16 cost, time, or effort required to create the 200L EXPAREL manufacturing process is also relevant 17 to the extent that that evidence addresses whether the patents at issue are related. 18 RDF’s MIL Nos. 5–7 are also denied. Potential bias of a witness is always relevant. See 19 United States v.

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